In times like these...

[rod]

Nothing in the least about Dump represents America. And we all better start brushing up on our Russian.

And I wasn’t referring to the elections.

Russia puts out the best porn.

 

[bbsam]

I never said deflation is a good thing. I said prices dropping is a good thing for multiple reasons. At this point the prices under Biden/Harris have driven so high and so fast that we could have the prices drop 20% and we would probably still not go into a long term deflation period. We would probably have one hell of an economy because people would be able to afford things they are not buying now.

Think about that. Prices dropping 20%. Do you think companies have a 20% profit margin on their products? I understand that from the demand side everything would become more more affordable. From a supply side, in a “supply side” economics system that we’ve become, it would be absolutely catastrophic.

 

[Darmark7]

Think about that. Prices dropping 20%. Do you think companies have a 20% profit margin on their products? I understand that from the demand side everything would become more more affordable. From a supply side, in a “supply side” economics system that we’ve become, it would be absolutely catastrophic.

I was using that as an example. but there are some products of some companies that have a 20% profit margin and even more. If companies were only charging what they had to they couldn’t lower the price when people start buying elsewhere.

 

[UnionStrong]

I was using that as an example. but there are some products of some companies that have a 20% profit margin and even more. If companies were only charging what they had to they couldn’t lower the price when people start buying elsewhere.

He sounds like a Bidenomics professor

 

[bbsam]

I was using that as an example. but there are some products of some companies that have a 20% profit margin and even more. If companies were only charging what they had to they couldn’t lower the price when people start buying elsewhere.

You want companies to charge only what they had to? Holy crap! I thought I was left wing!

So should we cap profits? Implement cost controls?

Imagine how fast investors would flee.

 

[bbsam]

He sounds like a Bidenomics professor

Not really. But if you pay attention to things like the WSJ, Reuters, and quarterly earnings reports, you start to get a feeling for how capitalism works. Should it be reformed and regulated? Absolutely. The captains of industry and billionaires who own Washington will disagree.

 

[Darmark7]

You want companies to charge only what they had to? Holy crap! I thought I was left wing!

So should we cap profits? Implement cost controls?

Imagine how fast investors would flee.

You failed again at trying to put words in my mouth. I have said from the beginning it is all about supply and demand. No we shouldn’t cap profits because supply and demand will usually take care of that. That’s how capitalism works… Oh I almost forgot you are against capitalism.

 

[UnionStrong]

Not really. But if you pay attention to things like the WSJ, Reuters, and quarterly earnings reports, you start to get a feeling for how capitalism works. Should it be reformed and regulated? Absolutely. The captains of industry and billionaires who own Washington will disagree.

a socialist would say.

 

[bbsam]

You failed again at trying to put words in my mouth. I have said from the beginning it is all about supply and demand. No we shouldn’t cap profits because supply and demand will usually take care of that. That’s how capitalism works… Oh I almost forgot you are against capitalism.

By the time “demand takes care of it” you’ll have companies closing and massive layoffs.

 

[bbsam]

a socialist would say.

What do you know of socialists?!? I’m guessing I’d DOGE decides to start messing with social security a lot of folks will start squealing about how, “I’ve always said not ALL socialism is bad!!!”

 

[UnionStrong]

What do you know of socialists?!? I’m guessing I’d DOGE decides to start messing with social security a lot of folks will start squealing about how, “I’ve always said not ALL socialism is bad!!!”

 

[UnionStrong]

By the time “demand takes care of it” you’ll have companies closing and massive layoffs.

 

[Darmark7]

By the time “demand takes care of it” you’ll have companies closing and massive layoffs.

Oh my god do you ever stop with the sky is falling. Supply a demand is how our system works and has worked.

 

[59 Dano]

Think about that. Prices dropping 20%. Do you think companies have a 20% profit margin on their products? I understand that from the demand side everything would become more more affordable. From a supply side, in a “supply side” economics system that we’ve become, it would be absolutely catastrophic.

No it wouldn't. Suppliers' costs would be dropping just as much, if not more.

 

[59 Dano]

Not really. But if you pay attention to things like the WSJ, Reuters, and quarterly earnings reports, you start to get a feeling for how capitalism works. Should it be reformed and regulated? Absolutely.

If you think it should be reformed and regulated then you don't really understand how it works. What kind of reforms to compitalism do you think are needed?

 

[Fred's Myth]

Quick question. If deflation is a good thing, why doesn’t the federal reserve have a target of -3% inflation?

"Deflation is the general decline in prices of goods and services, which effectively increases the value of currency. It's associated with a variety of causes, including a contraction in the availability of money, as well as increased productivity and advancements in technology. Historically, it was seen by economists as an adverse phenomenon, but a more diverse range of opinions exists today. According to the Pigou effect, price deflation leads to increased employment and wealth, stabilizing the economy." Deflation: Definition, Causes, and Changing Views on Its Impact.

 

[bbsam]

If you think it should be reformed and regulated then you don't really understand how it works. What kind of reforms to compitalism do you think are needed?

Oh, I don’t know. Maybe large and expensive public/private enterprise programs. Probably a lot more money going into social programs. Probably higher wages and a strengthening of the middle classes. Probably a lot more money going to people who are going to spend it rather that use it for stock buybacks etc.

Because the “job creators” that we bow to have no loyalty to the workforce. That’s not what they’re in business for. Capitalism is more than willing to devour itself from the inside out and the middle classes/workforce ore the main course.

 

[bbsam]

"Deflation is the general decline in prices of goods and services, which effectively increases the value of currency. It's associated with a variety of causes, including a contraction in the availability of money, as well as increased productivity and advancements in technology. Historically, it was seen by economists as an adverse phenomenon, but a more diverse range of opinions exists today. According to the Pigou effect, price deflation leads to increased employment and wealth, stabilizing the economy." Deflation: Definition, Causes, and Changing Views on Its Impact.

Are you suggesting that the federal reserve is too ignorant to have -3% inflation as a goal? Is there a reason Wall Street and Washington don’t set monetary policy with deflation being the goal?

My bet is that the Pigou effect has limited and small scale positives with far larger risks associated with it. Like insisting that tax cuts will “pay for themselves”. It’s the voodoo economics of the 80’s that proves itself false time and time again.

 

[bbsam]

"Deflation is the general decline in prices of goods and services, which effectively increases the value of currency. It's associated with a variety of causes, including a contraction in the availability of money, as well as increased productivity and advancements in technology. Historically, it was seen by economists as an adverse phenomenon, but a more diverse range of opinions exists today. According to the Pigou effect, price deflation leads to increased employment and wealth, stabilizing the economy." Deflation: Definition, Causes, and Changing Views on Its Impact.As an answer to my question to your post…

I would also submit that the phenomenal amount of debt (credit card etc.) held by the American public makes the Pigou effect even more complicated. Credit has been cheap for so long that people have had a false sense of wealth. Deflation would have lending institutions immediately pulling back. Probably not an entirely bad thing, but there’s no reason for banks to push credit for an economy they don’t believe is expanding aka in deflation.

 

[UnionStrong]

51 days until Trumps inauguration.